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Buying selling a council property through Right To Buy, tax implications
Induna123
Posts: 7 Forumite
(This might be in the wrong section to ask, if so can the moderator move this thread). I'm a council tenant who has applied to buy my council home through the right to buy scheme. The council have made me an offer with a large discount. After 5 years I can sell it without having to pay back any discount but what Capital gains tax implications might there be? Does it go on the figure that the house was valued at the time of purchase and not after the the discount was applied? Say for example the house was valued at £150,000. I get a 66% discount and get it for £50,000 and then sell it for £200,000. I only pay capital gains tax on the £50k profit not £150k?
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Comments
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It is a requirement that you live in any property you buy from the council for a specified period.
If you do what that arrangement requires, there is no CGT liability if you sell at the end of the period.
If you rent the property out contrary to that requirement, you have to repay some or all of the discount. And CGT.If you've have not made a mistake, you've made nothing1 -
There is no CGT liability on your main residence.1
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